[1] The village was founded as "Vågan" in the early 12th century by King Øystein Magnusson, who built a church and a fishermen's hostel there.

The education sector includes a college for film and other art forms: Nordland kunst- og filmhøgskole (NKFS).

This happens mostly because of the seasonal fishing, "Lofotfisket", which mostly takes part in an area of the sea known as Hølla, located between modern day Kabelvåg, Svolvær, and Skrova.

Due to the special weather of the Lofoten islands, it is an ideal place to make the product known as tørrfisk (English: dried fish).

During the Middle Ages, dried fish became a very important commodity in the Catholic countries of Southern Europe, and the backbone of the local economy.